Bega Cheese (ASX:BGA): FY26 Earnings Growth, Branded Segment Results and FY27 EBITDA Guidance

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Bega Cheese (ASX:BGA): FY26 Earnings Growth, Branded Segment Results and FY27 EBITDA Guidance

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Highlights

Bega Cheese (ASX:BGA) reported FY26 revenue of A$3,774.6 million, up 6.7%.
Normalised EBITDA rose 11.7% to A$225.6 million, while statutory profit after tax was A$54.8 million.
The full-year dividend totalled 14.5 cents per share, fully franked, including a 7.5 cent final payment.
FY27 normalised EBITDA guidance is A$240 million to A$245 million, subject to normal trading conditions.

Bega Cheese Limited, trading as Bega Group, produces and sells branded dairy and related food products alongside bulk dairy ingredients and nutritional powders. The company's FY26 results, released in August, showed higher revenue and earnings, a return to statutory profit and an FY27 earnings range, while the final dividend has since been paid.

Company Business

Bega Group operates two reporting segments. The Branded segment covers yoghurt, milk-based beverages, white milk, cheese and high-protein products sold to consumers and food service customers. The Bulk segment supplies dairy ingredients and nutritional powders and processes the milk intake that supports both parts of the business.

For Bega Cheese (ASX:BGA), the Branded segment generated external revenue of A$3,222.6 million in FY26, while Bulk external revenue was A$552.0 million. International branded revenue grew 12% in the year, with Southeast Asia identified as a growth region. The company has also exited primary peanut processing, including the sale of its Kingaroy and Tolga facilities in Queensland.

Recent Development

In August 2026, Bega Cheese (ASX:BGA) reported results for the year ended 30 June 2026 and extended its strategic plan to FY31. The company stated an ambition of normalised EBITDA above A$310 million by FY31, with a framework that includes double-digit return on funds employed and revenue of A$4.3 billion to A$4.7 billion.

Operational changes were a feature of the year. Normalised items mainly related to the closure of the Strathmerton site in Victoria, the consolidation of cheese manufacturing at Ridge Street in Bega, New South Wales, and costs associated with exiting peanut processing. The company expects about A$38 million of savings in FY27 from the Ridge Street consolidation and automation of the Laverton warehouse, with benefits from Laverton expected from the first quarter of FY27.

The final dividend was 7.5 cents per share, fully franked, with a dividend reinvestment plan in place. It was paid on 1 October 2026.

Financial Performance and Sector Context

Statutory revenue rose 6.7% to A$3,774.6 million from A$3,539.0 million. Statutory EBITDA increased 22.2% to A$202.3 million, and statutory EBIT reached A$106.9 million compared with A$27.1 million in the prior corresponding period. Statutory profit after tax was A$54.8 million, against a loss of A$8.5 million, equal to earnings of 17.9 cents per share.

On a normalised basis, which excludes items such as restructuring and the peanut exit, EBITDA rose 11.7% to A$225.6 million and profit after tax increased 35.8% to A$69.0 million. Normalised earnings per share were 22.6 cents. Branded normalised EBITDA was A$220.7 million, up A$15.5 million, while Bulk delivered A$53.2 million, up 37% and above its A$30 million to A$50 million target range. The Bulk result reflected a richer ingredient mix, higher milk intake and closer alignment between dairy commodity prices and farm gate milk prices, mainly in the first half.

Return on funds employed was 10.0%. Operating cash flow was A$129.3 million compared with A$165.0 million, and capital and intangible expenditure was A$109.8 million. Net debt was A$151.6 million, up from A$126.1 million, mainly reflecting A$37.1 million of restructuring payments, with the leverage ratio steady at 0.8 times.

Sector conditions include demand for high-protein and better-for-you products, which the company cited as a driver of Branded volumes.

Risks to Consider

The company noted that geopolitical conflicts and input cost pressures remain risks. Earnings in Bulk depend on the relationship between dairy commodity prices and the price paid for milk, which can shift between periods. Guidance is expressly subject to normal trading conditions, and the capital program, including factory consolidation and automation, requires execution to deliver the targeted savings. Net debt increased during the year.

What to Watch Next

Bega Cheese (ASX:BGA) issued FY27 normalised EBITDA guidance of A$240 million to A$245 million and expects capital expenditure of about A$110 million. Delivery of the A$38 million of expected savings, international growth and Laverton automation are measurable milestones, and later trading updates will show how earnings and net debt track.

Key Insights

Bega Cheese (ASX:BGA) enters FY27 after a year of higher revenue, normalised earnings growth and a return to statutory profit, supported by a net debt leverage ratio of 0.8 times. Branded products remain the principal earnings contributor, while Bulk improved on mix and milk pricing. Items to monitor include guidance delivery, cost savings from restructuring, dairy commodity and milk price alignment, and cash flow after elevated restructuring payments.

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